How Property Taxes Are Determined in Orange Beach and Ono Island, Alabama
By Meredith Amon, Licensed in Alabama and Florida
"Guided by Integrity. Backed by Experience. Search the Gulf with Meredith Amon."
www.searchthegulf.com
When clients ask me about the long-term costs of owning property in Orange Beach or on Ono Island, one of the most important topics that comes up is property taxes. While Alabama is known for having some of the lowest property tax rates in the country, there are a few key things to understand—especially when buying waterfront, luxury, or investment property.
Let’s take a closer look at how property taxes are determined in Orange Beach and on Ono Island.
How Property Taxes Are Calculated in Alabama
In Alabama, property taxes are based on a few main components:
1. Assessed Value
The county appraiser determines the assessed value based on the market value of your home or land.
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Residential property is assessed at 10% of market value.
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Commercial property is assessed at 20%.
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Agricultural/timber land is assessed at 10% (with specific valuation formulas).
So, a home with a $1,000,000 market value would have an assessed value of $100,000.
2. Millage Rate
The millage rate (also called the tax rate) is applied to the assessed value. A mill is equal to 1/10th of a cent, or $1 per $1,000 of assessed value.
In Baldwin County, the total millage rate for owner-occupied homes in Orange Beach is approximately 32-36 mills, depending on school zones and specific municipal charges.
3. Exemptions
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Homestead Exemption: If you live in the home as your primary residence, you may qualify for a homestead exemption, which reduces the taxable amount.
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Over-65 Exemption: Seniors who meet age and income requirements may qualify for additional exemptions.
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Disability Exemption: Also available if applicable.
Property Taxes in Orange Beach
Homes within the city limits of Orange Beach are subject to:
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Baldwin County property taxes
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Orange Beach city millage
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Applicable school district millage (either Orange Beach or Foley-based)
Important Note: Orange Beach is now its own city school system, and if your home is zoned for Orange Beach schools, that can influence your tax bill slightly due to dedicated school millage.
Property Taxes on Ono Island
Ono Island, while physically located in Orange Beach, is not inside the city limits of Orange Beach. Instead, it is governed by Baldwin County and operates as an unincorporated community.
So what does that mean for property taxes?
âś” You’ll Pay:
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Baldwin County property taxes
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County school district taxes (usually Foley schools unless tuition-based enrollment into Orange Beach City Schools)
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No Orange Beach city millage
Because Ono Island is not in the city, there’s no additional city tax applied.
Example:
For a $1,000,000 home on Ono Island (with 10% assessment = $100,000), and a millage of ~33:
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Annual Property Tax ≈ $3,300 (before exemptions)
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With Homestead Exemption (usually ~$250 reduction): ≈ $3,050 or less
Ono Island’s affordability in this area is a major reason buyers love it—especially compared to similar properties in other coastal states.
How to Look Up Your Tax Bill
You can view or estimate your tax bill using the Baldwin County Revenue Commissioner's website:
???? https://baldwincountyal.gov/departments/revenue
Search by owner name, parcel ID, or property address.
Personal Tip from Meredith
I always encourage buyers to request a pro forma property tax estimate from their title company or lender during escrow—especially if the previous homeowner had homestead exemptions you won’t be eligible for as a second-home buyer or investor.
Also, keep in mind that if you purchase vacant land and then build, your taxes will adjust once the improvement (home) is added to the assessment roll.
Property taxes in Orange Beach and on Ono Island are reasonable—especially when compared to neighboring coastal states like Florida, where rates can exceed 1.5%. Between the lack of municipal taxes on Ono Island, and the value-packed lifestyle, it’s one of the most financially attractive waterfront communities in the Southeast.
If you’re thinking about purchasing a home or lot on Ono Island or in Orange Beach, I’d be happy to walk you through the numbers and connect you with trusted tax professionals or local title companies who understand the nuances.
Reach out to me directly at meredith@searchthegulf.com or explore current listings here.
Meredith Amon is a Gulf Coast Expert Real Estate Advisor, licensed in Alabama and Florida. She specializes in helping buyers and sellers navigate the buying and selling of homes along the Gulf Coast, with deep expertise in Ono Island.
Example 1: Waterfront Home on Ono Island
Address: Peninsula Dr
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Lot Size: 96 x 177 (approximately 0.4 acres)
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Land Value: $175,100
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Improvement Value (Home): $726,300
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Total Market Value: $901,400
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Assessed Value (10% of market): $90,140
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2023 Property Tax (before exemptions): $2,902.03
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With Homestead Exemption: $2,652.03
➡️ This home is a classic canal-front property on the north side of Ono Island with a private dock. The taxes reflect a primary residence with homestead exemption applied.
Example 2: Newer Construction, Deep Water Access
Address: River Rd
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Lot Size: 97 x 217 (about 0.48 acres)
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Land Value: $175,100
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Improvement Value: $1,053,400
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Total Market Value: $1,228,500
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Assessed Value: $122,850
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2023 Property Tax: $3,931.52
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With Homestead: $3,681.52
➡️ This is a newer deep-water property with high-end finishes, outdoor kitchen, and Gold Fortified certification. It’s assessed accurately based on structure size and location on Old River.
Example 3: Interior Home with Lower Value
Address: River Rd
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Lot Size: 100 x 200
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Land Value: $165,100
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Improvement Value: $280,500
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Total Market Value: $445,600
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Assessed Value: $44,560
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2023 Tax Bill: $1,430.42
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With Homestead: $1,180.42
➡️ A smaller, interior lot home with more modest square footage and older finishes. Great example of how location within the island impacts overall taxes.
Example 4: Vacant Lot in Ono North
Address: Dolphin Dr
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Lot Size: 100 x 175
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Land Value Only: $165,100
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Improvement Value: $0
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Assessed Value: $16,510
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2023 Tax Bill: $530.22
➡️ Vacant land remains extremely affordable in terms of tax burden. This can change significantly once a home is built and the property is reassessed.
Key Takeaways for Buyers
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Taxable value = 10% of market value (for residential)
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Millage rate in Ono Island averages around 30.6–32.6 mills
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Taxes vary by size, location, and exemptions
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Homestead exemption reduces the tax bill by approximately $250/year
Meredith's Advice:
I often tell my buyers that property taxes on Ono Island are incredibly reasonable given the exclusivity, amenities, and waterfront access the island provides. A $1.2M waterfront estate might only carry a $3,900 annual tax bill—dramatically lower than similar properties in Florida or other coastal states.
If you’re buying a second home, note that you won’t qualify for a homestead exemption, so your bill may be slightly higher than a full-time resident’s. And if you’re purchasing land with the intent to build, be prepared for your bill to increase once the home is completed and assessed.
Reach out at meredith@searchthegulf.com or explore available properties here:
Search Ono Island Listings
Meredith Amon is a Gulf Coast Expert Real Estate Advisor, licensed in Alabama and Florida. She specializes in helping buyers and sellers navigate the buying and selling of homes along the Gulf Coast.
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